10. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

WESCO Distribution has outstanding $500 million in aggregate principal amount of 5.375% Senior Notes due 2021 (the "2021 Notes") and $350 million in aggregate principal amount of 5.375% Senior Notes due 2024 (the "2024 Notes"). The 2021 Notes and 2024 Notes are unsecured senior obligations of WESCO Distribution and are fully and unconditionally guaranteed on a senior unsecured basis by WESCO International.

Condensed consolidating financial information for WESCO International, WESCO Distribution and the non-guarantor subsidiaries is presented in the following tables.



	Condensed Consolidating Balance Sheet
	September 30, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	45,775	$	48,308		$	—		$	94,083
Trade accounts receivable, net	—		—		1,236,612			—			1,236,612
Inventories	—		403,752		521,297			—			925,049
Prepaid expenses and other current assets	13,642		42,130		203,991			(105,380		)	154,383
Total current assets	13,642		491,657		2,010,208			(105,380		)	2,410,127
Intercompany receivables, net	—		—		2,141,945			(2,141,945		)	—
Property, buildings and equipment, net	—		50,191		107,400			—			157,591
Intangible assets, net	—		2,932		375,221			—			378,153
Goodwill	—		257,623		1,519,295			—			1,776,918
Investments in affiliates	3,817,521		4,228,307		—			(8,045,828		)	—
Other assets	—		18,615		23,064			—			41,679
Total assets	$	3,831,163	$	5,049,325	$	6,177,133		$	(10,293,153	)	$	4,764,468

Accounts payable	$	—	$	443,675	$	394,752		$	—		$	838,427
Short-term debt	—		—		39,712			—			39,712
Other current liabilities	—		117,701		153,033			(105,380		)	165,354
Total current liabilities	—		561,376		587,497			(105,380		)	1,043,493
Intercompany payables, net	1,707,926		434,019		—			(2,141,945		)	—
Long-term debt, net	—		968,361		399,940			—			1,368,301
Other noncurrent liabilities	12,733		61,635		171,073			—			245,441
Total WESCO International, Inc. stockholders' equity	2,110,504		3,023,934		5,021,894			(8,045,828		)	2,110,504
Noncontrolling interests	—		—		(3,271		)	—			(3,271		)
Total liabilities and stockholders’ equity	$	3,831,163	$	5,049,325	$	6,177,133		$	(10,293,153	)	$	4,764,468



	Condensed Consolidating Balance Sheet
	December 31, 2016

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.		Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Cash and cash equivalents	$	—	$	41,552	$	68,579		$	—		$	110,131
Trade accounts receivable, net	—		—		1,034,402			—			1,034,402
Inventories	—		364,562		456,879			—			821,441
Prepaid expenses and other current assets	13,647		34,833		211,637			(123,013		)	137,104
Total current assets	13,647		440,947		1,771,497			(123,013		)	2,103,078
Intercompany receivables, net	—		—		2,060,336			(2,060,336		)	—
Property, buildings and equipment, net	—		51,824		105,783			—			157,607
Intangible assets, net	—		3,417		389,945			—			393,362
Goodwill	—		257,623		1,473,327			—			1,730,950
Investments in affiliates	3,538,476		4,028,502		—			(7,566,978		)	—
Other assets	—		23,846		22,998			—			46,844
Total assets	$	3,552,123	$	4,806,159	$	5,823,886		$	(9,750,327	)	$	4,431,841

Accounts payable	$	—	$	381,795	$	302,926		$	—		$	684,721
Short-term debt	—		—		20,920			—			20,920
Other current liabilities	—		120,299		170,872			(123,013		)	168,158
Total current liabilities	—		502,094		494,718			(123,013		)	873,799
Intercompany payables, net	1,572,486		487,850		—			(2,060,336		)	—
Long-term debt, net	—		983,449		379,686			—			1,363,135
Other noncurrent liabilities	12,737		55,898		162,641			—			231,276
Total WESCO International, Inc. stockholders' equity	1,966,900		2,776,868		4,790,110			(7,566,978		)	1,966,900
Noncontrolling interests	—		—		(3,269		)	—			(3,269		)
Total liabilities and stockholders’ equity	$	3,552,123	$	4,806,159	$	5,823,886		$	(9,750,327	)	$	4,431,841



	Condensed Consolidating Statement of Income and Comprehensive Income
	Three Months Ended
	September 30, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	867,973		$	1,169,377		$	(37,191	)	$	2,000,159
Cost of goods sold (excluding depreciation and
amortization)	—		697,896			954,109			(37,191		)	1,614,814
Selling, general and administrative expenses	—		140,638			139,383			—			280,021
Depreciation and amortization	—		4,475			11,599			—			16,074
Results of affiliates’ operations	53,576		42,726			—			(96,302		)	—
Interest expense (income), net	—		25,436			(8,125		)	—			17,311
Income tax (benefit) expense	—		(136		)	18,499			—			18,363
Net income	53,576		42,390			53,912			(96,302		)	53,576
Net income attributable to noncontrolling interests	—		—			(99		)	—			(99		)
Net income attributable to WESCO International, Inc.	$	53,576	$	42,390		$	54,011		$	(96,302	)	$	53,675
Other comprehensive income:
Foreign currency translation adjustments	51,148		51,148			51,148			(102,296		)	51,148
Comprehensive income attributable to WESCO International, Inc.	$	104,724	$	93,538		$	105,159		$	(198,598	)	$	104,823



	Condensed Consolidating Statement of (Loss) Income and Comprehensive (Loss) Income
	Three Months Ended
	September 30, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	827,648		$	1,052,915		$	(25,351	)	$	1,855,212
Cost of goods sold (excluding depreciation and
amortization)	—			663,159			852,365			(25,351		)	1,490,173
Selling, general and administrative expenses	38			128,514			126,995			—			255,547
Depreciation and amortization	—			5,114			11,823			—			16,937
Results of affiliates’ operations	100,295			71,567			—			(171,862		)	—
Interest expense (income), net	4,904			23,543			(7,655		)	—			20,792
Loss on debt redemption	123,933			—			—			—			123,933
Income tax expense (benefit)	2,441			(12,261		)	(11,329		)	—			(21,149		)
Net (loss) income	(31,021		)	91,146			80,716			(171,862		)	(31,021		)
Net income attributable to noncontrolling interests	—			—			590			—			590
Net (loss) income attributable to WESCO International, Inc.	$	(31,021	)	$	91,146		$	80,126		$	(171,862	)	$	(31,611	)
Other comprehensive loss:
Foreign currency translation adjustments	(13,993		)	(13,993		)	(13,993		)	27,986			(13,993		)
Comprehensive (loss) income attributable to WESCO International, Inc.	$	(45,014	)	$	77,153		$	66,133		$	(143,876	)	$	(45,604	)



	Condensed Consolidating Statement of Income and Comprehensive Income
	Nine Months Ended
	September 30, 2017

(In thousands of dollars)	WESCO International, Inc.		WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—	$	2,490,102		$	3,289,693		$	(97,420	)	$	5,682,375
Cost of goods sold (excluding depreciation and
amortization)	—		2,002,708			2,675,608			(97,420		)	4,580,896
Selling, general and administrative expenses	—		410,624			403,651			—			814,275
Depreciation and amortization	—		13,811			33,947			—			47,758
Results of affiliates’ operations	140,915		117,907			—			(258,822		)	—
Interest expense (income), net	—		74,961			(24,114		)	—			50,847
Income tax (benefit) expense	—		(3,034		)	50,718			—			47,684
Net income	140,915		108,939			149,883			(258,822		)	140,915
Net income attributable to noncontrolling interests	—		—			(3		)	—			(3		)
Net income attributable to WESCO International, Inc.	$	140,915	$	108,939		$	149,886		$	(258,822	)	$	140,918
Other comprehensive income:
Foreign currency translation adjustments	96,097		96,097			96,097			(192,194		)	96,097
Post retirement benefit plan adjustments	252		252			252			(504		)	252
Comprehensive income attributable to WESCO International, Inc.	$	237,264	$	205,288		$	246,235		$	(451,520	)	$	237,267



	Condensed Consolidating Statement of Income and Comprehensive Income
	Nine Months Ended
	September 30, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net sales	$	—		$	2,481,165		$	3,140,011		$	(78,421	)	$	5,542,755
Cost of goods sold (excluding depreciation and
amortization)	—			1,985,639			2,535,861			(78,421		)	4,443,079
Selling, general and administrative expenses	(328		)	351,663			448,021			—			799,356
Depreciation and amortization	—			15,318			34,951			—			50,269
Results of affiliates’ operations	193,266			105,401			—			(298,667		)	—
Interest expense (income), net	17,555			63,247			(21,729		)	—			59,073
Loss on debt redemption	123,933			—			—			—			123,933
Income tax (benefit) expense	(1,261		)	4,677			10,262			—			13,678
Net income	53,367			166,022			132,645			(298,667		)	53,367
Net loss attributable to noncontrolling interests	—			—			(876		)	—			(876		)
Net income attributable to WESCO International, Inc.	$	53,367		$	166,022		$	133,521		$	(298,667	)	$	54,243
Other comprehensive income (loss):
Foreign currency translation adjustments	66,512			66,512			66,512			(133,024		)	66,512
Post retirement benefit plan adjustments	(16		)	(16		)	(16		)	32			(16		)
Comprehensive income attributable to WESCO International, Inc.	$	119,863		$	232,518		$	200,017		$	(431,659	)	$	120,739



	Condensed Consolidating Statement of Cash Flows
	Nine Months Ended
	September 30, 2017

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(28,740	)	$	168,603		$	(58,752	)	$	—		$	81,111
Investing activities:
Capital expenditures	—			(7,435		)	(8,535		)	—			(15,970		)
Dividends received from subsidiaries	—			51,561			—			(51,561		)	—
Other	—			(174,032		)	16,711			160,811			3,490
Net cash (used in) provided by investing activities	—			(129,906		)	8,176			109,250			(12,480		)
Financing activities:
Borrowings	135,442			557,391			691,682			(173,907		)	1,210,608
Repayments	—			(587,485		)	(617,301		)	13,096			(1,191,690		)
Repurchases of common stock	(106,702		)	—			—			—			(106,702		)
Dividends paid by subsidiaries	—			—			(51,561		)	51,561			—
Other	—			(4,380		)	—			—			(4,380		)
Net cash provided by (used in) financing activities	28,740			(34,474		)	22,820			(109,250		)	(92,164		)
Effect of exchange rate changes on cash and cash equivalents	—			—			7,485			—			7,485
Net change in cash and cash equivalents	—			4,223			(20,271		)	—			(16,048		)
Cash and cash equivalents at the beginning of period	—			41,552			68,579			—			110,131
Cash and cash equivalents at the end of period	$	—		$	45,775		$	48,308		$	—		$	94,083



	Condensed Consolidating Statement of Cash Flows
	Nine Months Ended
	September 30, 2016

(In thousands of dollars)	WESCO International, Inc.			WESCO Distribution, Inc.			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Consolidated
Net cash provided by (used in) operating activities	$	124,834		$	(274,575	)	$	366,929		$	—		$	217,188
Investing activities:
Capital expenditures	—			(9,224		)	(3,959		)	—			(13,183		)
Acquisition payments, net of cash acquired	—			(50,745		)	—			—			(50,745		)
Dividends received from subsidiaries	—			47,621			—			(47,621		)	—
Other	—			(257,768		)	(335,594		)	589,477			(3,885		)
Net cash used in investing activities	—			(270,116		)	(339,553		)	541,856			(67,813		)
Financing activities:
Borrowings	224,043			1,386,397			468,890			(257,768		)	1,821,562
Repayments	(344,804		)	(834,688		)	(500,879		)	(331,709		)	(2,012,080		)
Dividends paid by subsidiaries	—			—			(47,621		)	47,621			—
Other	(4,073		)	(3,494		)	—			—			(7,567		)
Net cash (used in) provided by financing activities	(124,834		)	548,215			(79,610		)	(541,856		)	(198,085		)
Effect of exchange rate changes on cash and cash equivalents	—			—			1,268			—			1,268
Net change in cash and cash equivalents	—			3,524			(50,966		)	—			(47,442		)
Cash and cash equivalents at the beginning of period	—			38,963			121,316			—			160,279
Cash and cash equivalents at the end of period	$	—		$	42,487		$	70,350		$	—		$	112,837

Revisions

As described in Note 2, the Condensed Consolidated Balance Sheet at December 31, 2016 has been revised to correct certain financial statement line items.